Experience The Difference

The Benefits Of
Borrowing With Groundfloor

The Professional’s Choice

The Preferred
Private Money Lender

Are you a real estate professional? Are you a builder? Are you an investor that wants to build an investment property?

If so, then you need access to the right private money lender. That’s why we are the preferred choice for many real estate professionals.

You Have Questions, We have Answers

Have Any New Loan Questions?

Learn more with some of Groundfloor’s frequently asked questions.

Is the interest charged on the entire amount or just the funds drawn?

Just the drawn funds

Do I have to have my building permit in order to close?

Yes, we require the permit to be in hand, however we can consider a land only loan to help you secure the property during the permitting process 

Do you need experience to do new construction?

 While you don’t need to show experience in new construction, you need to show 4+ experience over the past 5 years of either rehabs or rentals.

Can you do development loans?

Can you do development loans?  No, we do not have funding mechanism for horizontal build costs.  Ideally we look for infill scenarios.

What Is a new construction loan for builders?
First. What is it? A new construction loan is a type of financing designed specifically for individuals or businesses looking to build a new structure or remodel an existing one by taking it down to the foundation. This loan offers interest only on disbursed funds, as well as our deferred payment program.
How are these new construction loans structured?
Our new construction loans operate slightly differently than our renovation loans. Borrowers must have the experience to be eligible. Minimum of 4 transactions in the last 5yrs. These can be flips, rentals, or new construction. The loans fund different percentages of the construction based on the tier in which the borrower falls. We also tend to grab additional documents for this type of loan.

This would include 1 bank statement, a general contractor license, and the contract you have with your general contractor. While they are not part of the loan, we still need to confirm there is a contract in place. Once a loan is approved, the borrower is able to access the full amount of the loan in a series of draws. Interest accrues on the loan as it is used.
What is the advantage of investing in new construction loans?
As is the case with all loans we offer, rates are risk-adjusted based on the creditworthiness of the borrower and the value of the collateral relative to the loan balance. In general, we have found that borrowers who take out a new construction loan are more experienced and have a greater financial capacity than a typical renovator.

Furthermore, new construction overall is less risky than a renovation because it is essentially a clean slate — often with renovation projects, you run into issues that you were not expecting, whereas with new construction, you are more aware of all contingencies because you are starting from the ground up.

Finally, the current market for these types of loans is wide open — for the most part, builders have to turn to banks or larger non-bank lenders in order to receive loans for their new construction projects. True to our mission of creating a radically open, decentralized, and accessible capital market, we saw an opportunity for Groundfloor to step in and change the game.

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With New Construction Loans?

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Get Started With New Construction

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New Construction Loan?